• Journal of Industrial Convergence
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• v.19 no.1
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• pp.71-77
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• 2021

Screen Golf provides a more realistic interface to users by implementing sophisticated sensors and 3D graphics so that they can play golf in an environment almost identical to the actual golf course, to provide a sense of reality that goes beyond simply enjoying golf indoors. In addition, users who experienced this interface environment showed a tendency to feel the fun of golf more and become more immersed in golf. Therefore, it is most important to provide an effective realistic interface in screen golf. In this study, the meaning of screen golf as a tangible sport and various interface elements embodied in screen golf were summarized. Also the factors that enable users to feel reality and fun of actual golf to make users more immersed in screen golf were identified. For this, interface elements based on sensory elements were arranged in terms of visual, auditory, and tactile sense, and improvement plans and directions for providing effective sensory interfaces for screen golf were suggested through user FGI, targeting regular customers of Golfzone and KakaoVX screen golf, and in-depth interviews with experts. As a result of the analysis, it was confirmed that the course information including the yardage and the play situation-directed graphic are elements that make immersion in the visual aspect. In terms of tactile aspect, the fact that users actually use golf equipment, as well as the sense of existence of a physical interface that embodies various course environments and course setting appeared to be an important factor. In particular, in the auditory aspect, it was confirmed that providing customized services for each user through AI caddy implemented to resemble a actual caddy is the most effective way to immerse users in screen golf with greater fun and realism.

• Asia Marketing Journal
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• v.6 no.3
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• pp.59-81
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• 2004

Store loyalty is increasingly being recognized as a path to long-term business profitability. Customer contact employees deliver a service firm's promises and create an important image for the firm. A major purpose of this study is to investigate the effects of customer service and product value on store loyalty. In order to test research hypotheses, data were collected through surveys administered to 300 apparel store customers. Two hundred thirty nine usable data were used for the analysis. The findings of this research are as follows: First, a employee's voluntary service(EVS) has a positive impact on interpersonal r elationship, which then affects switching barrier and store loyalty. Second, a employee's regular service(ERS) has an influence on store satisfaction, which in turn affect store loyalty. Third, product value is shown to be a significant antecedent to store satisfaction, which have a direct effect on store loyalty. The study concludes with implications, contributions, and limitations of the research and the empirical findings of this research should be beneficial to marketing practitioners and retailing businessmen in developing effective marketing strategies.

• Archives of design research
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• v.19 no.2 s.64
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• pp.53-62
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• 2006

E-mail has indeed developed from 'a means of instant communication' to an indispensable part of online marketing. Therefore, companies need to implement consistent customer management. Communication with customers and marketing through e-mail is a powerful way of communication and adapting one-to-one marketing strategies to customer trends, habits and taste preferences. Since setting accurate targets is especially important in the fashion industry, e-mail marketing is the most effective way to communicate with customers and one-to-one marketing constitutes a very important strategy. In this study, I will analyze this powerful one-on-one marketing tool, particularly actual e-mail messages sent by an Internet Shopping Mall from June 12 to July 30, 2005, examine the effect of these messages on sales growth and analyze actual feedback received. Regarding e-mail read rates broken down by age and gender, 1 found that females in their late twenties recorded the highest rate at 21.66% and their contribution to sales growth was recorded at 3.5% From actual sales records, found that 28.10% of total sales were attributable to people in their late twenties, showing that the age group that reads e-mails the most also buys the most. Regarding feedback by e-mail title, e-mails from the 'Casual' category seemed to be the most effective, in that most of these e-mails were read. Also, messages sent on Tuesdays were read the most, according to the feedback analysis by weekday. Section e-mails were read more often than regular e-mails. Regarding the view rate according to the time e-mails were sent, messages sent to females in their late twenties at two o'clock in the afternoon were read by 20.93% of recipients, recording the highest read rate. By offering informative content and practical tips, visitors will be attracted to the site and generate site traffic. Therefore, we can conclude that sending e-mail messages can greatly contribute to sales growth and e-mail marketing is very effective. Also, in order to make e-mail campaigns more effective and improve marketing results, we need to analyze actual results and apply our findings in future e-mail campaigns. With this, we get successful marketing results.

• Asia Marketing Journal
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• v.11 no.3
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• pp.185-203
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• 2009

Yuhan Kimberly, a joint-venture company of Korean Yuhan Company and American Kimberly-Clark, opened a premium diaper market in Korea by launching Pull-Ups which was pants-typed diapers in 1993. Pull-Ups was imported as finished goods from Kimberly-Clark. However, in spite of its huge market share in United States, it failed to land down in Korean market because of wrong positioning strategy which did not consider domestic customers' tastes. In 1996, Yuhan-Kimberly brought out a pants-typed diaper, Huggies-Toddler, to Korean market again. This paved the way for the combination of Kimberly-Clark's production power and Yuhan-Kimberly's marketing power and led to launch new product superior to Pull-Ups. However, this product was unsuccessful in the market because of wrong positioning which did not catch domestic customer's life styles such as cultural, environmental and habitual differences in toilet training, the cost increase coming from IMF crisis in Korea, weak trust within the company, weak trust within the company, and too much higher price than regular diapers. In 2005, Yuhan-Kimberly redeveloped new pants market business strategy. It was organically combined with winning product development plan, winning communication strategy and the market structure change through the pants market creation. Customer's habit, usage and attitude were studied with total 55 times market investigations. Also, all processes from planning to designing were executed in the customer's view by investigating product research, positioning research and advertisement research. Yuhan-Kimberly repositioned new product as a wearing diaper not as a toilet training diaper and launched Huggies Magic Panty as a premium product which had 25% higher price than previous Huggies. Huggies Magic Panty was recognized as a great hit product in domestic diaper market and the sales recorded 37.6 bill won in 2006, 57.2 bill won in 2007, and 90 bill won in 2008 since launching in 2005. The reason of Huggies Magic Panty's success was the repositioning strategy deduced from the precise check of customer's usage habit. It was the winning strategy of Huggies that were market investigation in order to survive in domestic baby goods market where a lot of companies struggled intensively, the exact positioning based on its market investigation and aggressive 360 degree communication strategy to give customers impressions efficiently.

• Journal of Global Scholars of Marketing Science
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• v.18 no.3
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• pp.1-25
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• 2008

Ⅰ. Introduction Retailers in the 21st century are being told that future retailers are those who can execute seamless multi-channel access. The reason is that retailers should be where shoppers want them, when they want them anytime, anywhere and in multiple formats. Multi-channel access is considered one of the top 10 trends of all business in the next decade (Patricia T. Warrington, et al., 2007) And most firms use both direct and indirect channels in their markets. Given this trend, we need to evaluate a channel equity more systematically than before as this issue is expected to get more attention to consumers as well as to brand managers. Consumers are becoming very much confused concerning the choice of place where they shop for durable goods as there are at least 6-7 retail options. On the other hand, manufacturers have to deal with category killers, their dealers network, Internet shopping malls, and other avenue of distribution channels and they hope their retail channel behave like extensions of their own companies. They would like their products to be foremost in the retailer's mind-the first to be proposed and effectively communicated to potential customers. To enable this hope to come reality, they should know each channel's advantages and disadvantages from consumer perspectives. In addition, customer satisfaction is the key determinant of retail customer loyalty. However, there are only a few researches regarding the effects of shopping satisfaction and perceptions on consumers' channel choices and channels. The purpose of this study was to assess Korean consumers' channel choice and satisfaction towards channels they prefer to use in the case of electronic goods shopping. Korean electronic goods retail market is one of good example of multi-channel shopping environments. As the Korea retail market has been undergoing significant structural changes since it had opened to global retailers in 1996, new formats such as hypermarkets, Internet shopping malls and category killers have arrived for the last decade. Korean electronic goods shoppers have seven major channels : (1)category killers (2) hypermarket (3) manufacturer dealer shop (4) Internet shopping malls (5) department store (6) TV home-shopping (7) speciality shopping arcade. Korean retail sector has been modernized with amazing speed for the last decade. Overall summary of major retail channels is as follows: Hypermarket has been number 1 retailer type in sales volume from 2003 ; non-store retailing has been number 2 from 2007 ; department store is now number 3 ; small scale category killers are growing rapidly in the area of electronics and office products in particular. We try to evaluate each channel's equity using a consumer survey. The survey was done by telephone interview with 1000 housewife who lives nationwide. Sampling was done according to 2005 national census and average interview time was 10 to 15 minutes. Ⅱ. Research Summary We have found that seven major retail channels compete with each other within Korean consumers' minds in terms of price and service. Each channel seem to have its unique selling points. Department stores were perceived as the best electronic goods shopping destinations due to after service. Internet shopping malls were perceived as the convenient channel owing to price checking. Category killers and hypermarkets were more attractive in both price merits and location conveniences. On the other hand, manufacturers dealer networks were pulling customers mainly by location and after service. Category killers and hypermarkets were most beloved retail channel for Korean consumers. However category killers compete mainly with department stores and shopping arcades while hypermarkets tend to compete with Internet and TV home shopping channels. Regarding channel satisfaction, the top 3 channels were service-driven retailers: department stores (4.27); dealer shop (4.21); and Internet shopping malls (4.21). Speciality shopping arcade(3.98) were the least satisfied channels among Korean consumers. Ⅲ. Implications We try to identify the whole picture of multi-channel retail shopping environments and its implications in the context of Korean electronic goods. From manufacturers' perspectives, multi-channel may cause channel conflicts. Furthermore, inter-channel competition draws much more attention as hypermarkets and category killers have grown rapidly in recent years. At the same time, from consumers' perspectives, 'buy where' is becoming an important buying decision as it would decide the level of shopping satisfaction. We need to develop the concept of 'channel equity' to manage multi-channel distribution effectively. Firms should measure and monitor their prime channel equity in regular basis to maximize their channel potentials. Prototype channel equity positioning map has been developed as follows. We expect more studies to develop the concept of 'channel equity' in the future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.5
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• pp.77-90
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• 2016

This study is to examine the importance of site selection and service quality in franchise business as food service franchise became one of the fastest-growing service industries today. The chief finding of this study is as follows: First, a survey in locational and service quality factors affecting food service franchise shows that responders are more concerned with hygiene and visibility of the store than proximity and transportation advantages which reflects low statistical significance, thus the distance did not seem to be a big problem for the responders in the context that they mostly visit nearby food franchise. Second, the examination of the influence by the service quality factors and customer satisfaction shows significant positive relation with customer response, speed and accuracy, and accuracy factors which reveals that the responders prefer prompt response and swift judgment toward the customer's needs and expectations, professional knowledge services to the credibility factors in which little correlation with the customer satisfaction were found. Third, the examination of the influence by the service quality factors, locational factors, and re-visit reveals that customer response and specialty showed statistically significant correlation with intention of WOM (Word of Mouth) and revisit, which suggests that swift judgment and response toward the customer's needs and expectations, professional knowledge services is of great importance to both customer satisfaction and revisit. The study on the aspects of locational and service quality factors affecting franchise industry's customer satisfaction was conducted as above, an investigation in both factors' influence on the customer satisfaction was made, and based on the results of the analysis, this research seeks an optimal operation strategy of a franchise business. Food service franchise are relatively very competent to business adminstration and reaction capability to consumption changes due to the already established market, and there are stores springing up everywhere inspired by the founders who are too confident of their success in the franchise business. However, it is necessary for the franchise beginners to figure out a zone oriented, regular customer oriented business strategy than just complying with the head office manual. Owing to an increasing trend of opening medium to large sized stores and investments in the wake of converting to multiple business type Korean food franchise, there is growing need to set up new concept of store development and operational management strategy in order to overcome the excessive competition and limited sales volume of the old-fashioned small sized, small capital franchise stores. Furthermore, as most business category of food service franchise serve very similar menus, from a product differentiation point of view, it is required to map out flexible sales concept including the adoption of competitive and low-price strategy. In conclusion, as is shown in the analytical research, the customers' optimal choice fluctuate over their preferences like customer convenience and circumstances rather than insisting on specific brand, thus it will be necessary for the franchise stores to draw up aggressive strategy and planning in running food service franchise to maximize their profits.

• Korean Journal of Labor Studies
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• v.24 no.1
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• pp.107-156
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• 2018

This article examines the history of the in - house subcontracting and the stabilization of labor - management relations in the steel industry in Japan. The ratio of in-house subcontract workers among steel workers has increased steadily until the mid-2000s, and about 70% in case of the largest company. In-house subcontracting was used as a strategy of the company to increase the quantity flexibility of employment and to save labor costs. The in-house subcontracting company needed company-specialized skills, and the internal labor market was formed because the rate of full-time workers was high and the turnover rate was low. The in-house subcontractor introduced long-term business relationship with the steel factory by introducing the equipment and materials necessary for the performance of the work, and the factory implemented the productivity improvement policy of the in-house subcontractor, and the win-win relationship between the factory and in-house subcontractor was developed. The trade union did not oppose the idea that the expansion of in-house subcontracting contributed to corporate profits, the stability of employment of the members and maintenance of their working conditions. Since 2000, the steel factory has pursued the transformation of in - house subcontractors into subsidiaries, which has been supported by capital relations. By the way, since the mid-2000s, there has been an increase in the number of regular workers' employment. The major factors are as follows: more strengthened compliance with laws and regulations, the higher quality request of customers, stricter keeping of deadlines, and problem in recruiting of workers at in-house subcontract companies. The wage gap between the factory and in - house subcontracting was less at company B than at company S, and the wage level of in - house subcontracting was about 90% of the factory at company B. The relatively small gap at company B seems to be due to the union's movement of narrowing the gap, low market dominance and unfavorable labor market. The internal labor market has been formed in the in-house subcontracting, and the wage gap is not large, and the possibility of labor disputes is low. Industrial relations are stable in the in-house subcontract company as well as the factory. The stabilization of labor-management relations in the steel industry in Korea is required to reduce the wage gap between the factory and in-house subcontract enterprises by raising productivity and expanding the internal labor market at in-house subcontract enterprises.

• Journal of Intelligence and Information Systems
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• v.20 no.4
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• pp.59-87
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• 2014

In MIS field, the researches on payment services are focused on adoption factors of payment service using behavior theories such as TRA(Theory of Reasoned Action), TAM(Technology Acceptance Model), and TPB (Theory of Planned Behavior). The previous researches presented various adoption factors according to types of payment service, nations, culture and so on even though adoption factors of identical payment service were presented differently by researchers. The payment service industry relatively has strong path dependency to the existing payment methods so that the research results on the identical payment service are different due to payment culture of nation. This paper aims to suggest a successful adoption factor of noble payment service regardless of nation's culture and characteristics of payment and prove it. In previous researches, common adoption factors of payment service are convenience, ease of use, security, convenience, speed etc. But real cases prove the fact that adoption factors that the previous researches present are not always critical to success to penetrate a market. For example, PayByPhone, NFC based parking payment service, successfully has penetrated to early market and grown. In contrast, Google Wallet service failed to be adopted to users despite NFC based payment method which provides convenience, security, ease of use. As shown in upper case, there remains an unexplained aspect. Therefore, the present research question emerged from the question: "What is the more essential and fundamental factor that should takes precedence over factors such as provides convenience, security, ease of use for successful penetration to market". With these cases, this paper analyzes four cases predicted on the following hypothesis and demonstrates it. "To successfully penetrate a market and sustainably grow, new payment service should find non-customer of the existing payment service and provide noble payment method so that they can use payment method". We give plausible explanations for the hypothesis using multiple case studies. Diners club, Danal, PayPal, Square were selected as a typical and successful cases in each category of payment service. The discussion on cases is primarily non-customer analysis that noble payment service targets on to find the most crucial factor in the early market, we does not attempt to consider factors for business growth. We clarified three-tier non-customer of the payment method that new payment service targets on and elaborated how new payment service satisfy them. In case of credit card, this payment service target first tier of non-customer who can't pay for because they don't have any cash temporarily but they have regular income. So credit card provides an opportunity which they can do economic activities by delaying the date of payment. In a result of wireless phone payment's case study, this service targets on second of non-customer who can't use online payment because they concern about security or have to take a complex process and learn how to use online payment method. Therefore, wireless phone payment provides very convenient payment method. Especially, it made group of young pay for a little money without a credit card. Case study result of PayPal, online payment service, shows that it targets on second tier of non-customer who reject to use online payment service because of concern about sensitive information leaks such as passwords and credit card details. Accordingly, PayPal service allows users to pay online without a provision of sensitive information. Final Square case result, Mobile POS -based payment service, also shows that it targets on second tier of non-customer who can't individually transact offline because of cash's shortness. Hence, Square provides dongle which function as POS by putting dongle in earphone terminal. As a result, four cases made non-customer their customer so that they could penetrate early market and had been extended their market share. Consequently, all cases supported the hypothesis and it is highly probable according to 'analytic generation' that case study methodology suggests. We present for judging the quality of research designs the following. Construct validity, internal validity, external validity, reliability are common to all social science methods, these have been summarized in numerous textbooks(Yin, 2014). In case study methodology, these also have served as a framework for assessing a large group of case studies (Gibbert, Ruigrok & Wicki, 2008). Construct validity is to identify correct operational measures for the concepts being studied. To satisfy construct validity, we use multiple sources of evidence such as the academic journals, magazine and articles etc. Internal validity is to seek to establish a causal relationship, whereby certain conditions are believed to lead to other conditions, as distinguished from spurious relationships. To satisfy internal validity, we do explanation building through four cases analysis. External validity is to define the domain to which a study's findings can be generalized. To satisfy this, replication logic in multiple case studies is used. Reliability is to demonstrate that the operations of a study -such as the data collection procedures- can be repeated, with the same results. To satisfy this, we use case study protocol. In Korea, the competition among stakeholders over mobile payment industry is intensifying. Not only main three Telecom Companies but also Smartphone companies and service provider like KakaoTalk announced that they would enter into mobile payment industry. Mobile payment industry is getting competitive. But it doesn't still have momentum effect notwithstanding positive presumptions that will grow very fast. Mobile payment services are categorized into various technology based payment service such as IC mobile card and Application payment service of cloud based, NFC, sound wave, BLE(Bluetooth Low Energy), Biometric recognition technology etc. Especially, mobile payment service is discontinuous innovations that users should change their behavior and noble infrastructure should be installed. These require users to learn how to use it and cause infra-installation cost to shopkeepers. Additionally, payment industry has the strong path dependency. In spite of these obstacles, mobile payment service which should provide dramatically improved value as a products and service of discontinuous innovations is focusing on convenience and security, convenience and so on. We suggest the following to success mobile payment service. First, non-customers of the existing payment service need to be identified. Second, needs of them should be taken. Then, noble payment service provides non-customer who can't pay by the previous payment method to payment method. In conclusion, mobile payment service can create new market and will result in extension of payment market.

• Journal of Global Scholars of Marketing Science
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• v.17 no.4
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• pp.247-269
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• 2007

In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.

• Journal of Yeungnam Medical Science
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• v.8 no.1
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• pp.107-126
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• 1991

The purpose of the study was to assess the morbidity pattern and the medical care utilization behavior of the urban residents in the poor area. The study population included 2,591 family members of 677 households in the poor area of Daemyong 8 Dong, Nam-Gu, Taegu and 2,686 family members of 688 households, near the poor area in the same Dong, were interviewed as a control group. On this study the household interview method was applied. Well-trained interviewers visited every household in the designated area and individually interviewed heads of households or housewives for general information, morbidity condition, and medical care utilization with a structured questionnaire. Individuals were interviewed from 1 to 30 December 1988. The major results were summarized as follows : The proportion of the people below 5 years of age was 4.2% of the total study population and 5.5% were above 65 years of age in the poor area. This was slightly higher than in the control area. The average monthly income of a household in the poor area was 403,000 won versus 529,000 won in the control area. Fifty-eight percent of the residents in the poor area and sixty-one percent in the control area were medical security beneficiaries, but the proportion of medical aid beneficiaries was 7.8% in the poor area and 4.6% in the control area. The 15-day period morbidity rate of acute illnesses was 57.1 per 1,000 in the poor area and 24.2 per 1,000 in the control area. Respiratory disease is the most common acute illness in both areas. The most frequently utilized medical facility was the pharmacy among the patients with acute illnesses in the poor area. Among them 58.1% visited pharmacy initially while 38.4% of the patients in the control area visited a clinic. Among persons with illnesses during the 15 days 8.8% in the poor area and 4.6% in the control area did not seek any medical facility. Mean duration of utilization of medical facilities was 3.5 days in the poor area and 3.3 days in the control area. Initially of the medical facilities in Daemyong 8 Dong, The pharmacy in the poor area and the clinic in the control area were most commonly utilized. The most common reason for visiting the hospital was 'regular customers' in the poor area and 'geographical accessibility' in the control area. The one year period morbidity rate of chronic illness in the poor area was 83.0 per 1,000 population and 28.0 per 1,000 in the control area. Disease of nervous system was the most common chronic illness in the poor area while cardiovascular disease in male and gastrointestinal disease in female were most prevalent in the control area. The most frequently utilized medical facility was the pharmacy among the patients with chronic illnesses in the poor area. Among them 24.2% visited the pharmacy initially while 34.7% of the patients in the control area visited the out-patient department of the hospital within a 15-day period. Among the patients with chronic illnesses 34.9% in the poor area and 16.0% in the control area did not seek any medical facility. Mean duration of utilization of medical facilities was 9.2 days in the poor area and 9.9 days in the control area within a 15-day period. Initially of the medical facilities in Daemyong 8 Dong, the pharmacy in the poor area and the hospital in the control area were most commonly utilized. The most common reason for visiting the hospital, clinic, health center or pharmacy in the poor area was 'geographical accessibility' while the reason for visiting herb clinic was 'good result' and 'reputation' in both areas.